Four strong entrepreneurial personalities on the show tonite. A subtitle for this episode might be “The Arrogant vs. The Confident, where do you draw the line?”.
One of the “confident” was the husband and wife team of Irene and Noam from Bambooee. They win tonite’s Sharky Award.
They gave a compelling presentation featuring their “paper towel replacement” made of bamboo which could be recycled by washing it. I kept thinking that a cloth hand towel could do the same thing and was far cheaper, but the Sharks loved their concept. Irene and Noam sweetened the deal by including other products which they had been selling. When they revealed their total annual revenue of $1.6 million, the Sharks got excited. Shark Lori got the deal by offering $200K for 10% equity….exactly what they asked for. Well played!
The Arrogant…….Jenifer and Haley from Zipit Bedding was in the proof of concept phase of the business with only 1000 units sold. Despite their limited experience, they seemed to be very inflexible regarding their distribution strategy. They wanted to use a TV Direct Response campaign in addition to a retail approach. The Sharks were adamant that the DR approach was not a good strategy for them, but they wouldn’t agree.
Doctor Amy from Buzzy had a great product……one that dramatically reduces the pain experienced from an injection at the Dr’s office. It was good to hear that Amy found that the U.S. cost to manufacturer her product was now equal to China’s. This may help bring back manufacturing to the U.S.
Amy drew a hard-line on the company valuation, and rejected the offers made by three Sharks based on a $3 million valuation. Considering her sales were $1 million the previous year, a 3X revenue valuation was quite reasonable.
Lori from Cheek’d had a new approach to online dating. I really liked her passion, but after three years she wasn’t even close to profitability (it normally takes 3 to 5 years to hit the break-even point in a new business). As Shark Robert pointed out, ” Doing the same thing over and over but expecting a different result is the definition of insanity”. Amy refused to listen to the advice the Sharks offered. It’s time for Amy to move on.
So how do you know when you’re being arrogant and not just confident? There is no magic answer, but when you’ve heard the same advice from two or more credible sources, it’s time to carefully consider their advice.